REA warns of slowdown
REVENUE in REA Group’s Australian arm has soared despite a slowdown in the housing market but the online real- estate advertiser has warned it expects conditions to further decline in 2018.
Shares in REA fell about 6 per cent yesterday after the company reported a 19 per cent slip in full- year net profit to $ 206.3 million, following a $ 182.8 million writedown of its Asian business.
Revenue for the year to June 30 rose 16 per cent to $ 671.2 million, driven by a 14 per cent climb in revenue for its Australian division – which includes realestate. com. au, realcommercial. com. au and Flatmates. com. au. Chief executive Tracey Fellows said REA was a clear market leader in Australia. COMMONWEALTH Bank is being investigated by the corporate watchdog over how it responded to allegations it had violated money laundering and terrorism financing laws and breached the Corporations Act.
Australian Securities and Investments Commission chairman Greg Medcraft told a parliamentary committee yesterday that ASIC was looking at issues including whether CBA complied with its duties under the Corporations Act and whether it had met continuous disclosure obligations.
Mr Medcraft said Australia’s largest bank should have alerted ASIC in 2015 when it first learnt of a problem in its cash deposit machines that led to the money laundering case.
He slammed what he said was an industry- wide culture of silence.